Enterprise Inns shares are up after the company agreed to refinance its debt.
The company, which has published Q1 figures 'in line with expectations', said that senior Bank debt had been refinanced to two tranches expiring in December 2012 and December 2013.
This was against current expiries of £625 million due on May 2011.
Shares are up 34.2 pct after rising yesterday and investors are showing their relief at the deal.
However, analysts who have a 'sell' rating on the company said that 'very large expiring tranches' along with amortisation of £25 million every six months made the company a poor long term prospect.
£3.4 billion in debt, Enterprise today reported a fall in operating profits from £104 million to £86 million in the six months to the end of March, with average net income per pub down by £1,000 to £31,200.
Hugh-Guy Lorrimon, Seymour Pierce offered this comment:
"The new debt facility will be welcomed by the market as it breathes a sigh of relief that there is no rights issue for now - but long term problems remain."